Which one of the following statements is not true in relation to incomplete records?

(a)

It is an unscientific method of recording transactions

(b)

Records are maintained only for cash and personal accounts

(c)

It is suitable for all types of organisations

(d)

Tax authorities do not accept

_____ towards the repayment of capital on winding up of the company.

(a)

Equity share

(b)

Preference

(c)

Debenture

(d)

Dividend

_____ is returned to the applicants for rejected applications.

(a)

Application money

(b)

Allotment money

(c)

Under subscription

(d)

Over subscription

Capital Reserve represents _____ profit.

(a)

Revenue

(b)

both 'a' and 'b'

(c)

Deferred revenue

(d)

Capital

Penalty for delay in refunding application money ___________________

(a)

6%

(b)

5%

(c)

15%

(d)

20%

Interest on calls in advance is ________________

(a)

4% p.a.

(b)

5% p.a.

(c)

6% p.a.

(d)

7% p.a.

Interpretation of accounts is the ____________

(a)

art and science of translating the figures

(b)

to know financial strengths and weakness of a business

(c)

to know the causes for the prevailing performance of business

(d)

all of the above

_________ refers to the excess of current assets over current liabilities.

(a)

Income

(b)

Profit and loss account

(c)

Balance sheet

(d)

Working capital

All profitability ratios are expressed in terms of ___________

(a)

Proportion

(b)

Percentage

(c)

Times

(d)

Money

_____ help to assess the ability of a business concern to meet its short term financial obligations.

(a)

Long term debts ratio

(b)

Liquidity ratios

(c)

Profitability ratios

(d)

Turnover ratios

_____ ratios show how efficiently assets or other items have been used to generate revenue from operations.

(a)

Liquidity

(b)

Long term solvency

(c)

Turnover

(d)

Profitability

When total sales is Rs.2,00,000, cash sales is Rs.65,000, then credit sales will be Rs _______________

(a)

Rs.1,35,000

(b)

Rs.2,65,000

(c)

Rs.35,000

(d)

Rs.65,000

Total sales of a business is Rs. 8,75,0000. If cash sales is Rs.3,75,000, then credit sales will be _____________

(a)

Rs.12,25,000

(b)

Rs.5,00,000

(c)

Rs.12,00,000

(d)

Rs.12,10,000

Absolute liquid asset mean ________________

(a)

Cash, Bank, and Short term investments

(b)

Cash, Bank and Stock

(c)

Cash, Bank, Stock, and Prepaid Expenses

(d)

None of these

The relationship between sales and capital employed is known as ______________

(a)

Capital Turnover Ratio

(b)

Current Ratio

(c)

Stock Turnover Ratio

(d)

Solvency Ratio

When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as _____________

(a)

Accounting Ratio

(b)

Financial Ratio

(c)

Costing Ratio

(d)

None of these

All transactions related to receipt either in cash or through bank are recorded using ____________

(a)

payment voucher

(b)

contra voucher

(c)

receipt voucher

(d)

sales voucher

Suspense account group is defined under _________

(a)

Assets

(b)

Income

(c)

Expenditure

(d)

Liabilities

__________ facilitates fast and accurate retrieval of data and information.

(a)

Computer accounting system

(b)

Accounting software

(c)

Both

(d)

None of the above

___________ is one of the most widely used financial accounting softwares

(a)

Tally

(b)

Excel

(c)

Word

(d)

Spread sheet